The objective of the research is to determine to what extent patient problems, identified through the use of a problem-oriented record, can be used to supplement and/or supplant diagnosis as predictors of psychiatric treatments and outcomes. The research design involves a baseline assessment of the patient's level of functioning prior to inpatient or day hospitalization, codification of the initial treatment and evaluation plans of clinical staff for each patient problem, and reassessment of patient functioning two months after discharge and one year after treatment initiation. To measure patient functioning an outcome instrument was developed, utilizing pre-existing concepts and items and, reliabilities and validities have been assessed. This instrument assesses areas of patient functioning and subjective distress. Environmental stresses and supports, system dependency, consumer satisfaction, and overall functioning are also assessed. In order to classify patient problems and treatments, detailed hierarchically-ordered coding systems were developed. These have proved reliable. The prevalence of clinically identified problems and treatments has been established for the sample. In order to determine patient-reported problems, a computer-patient interview has been developed. In the current phase, data analysis has begun, relating problems and diagnoses to treatments and two-month outcomes.